Coveo Reports Third Quarter Fiscal 2026 Financial Results
Executive Summary
- Coveo reported record Q3 FY 2026 SaaS subscription revenue of $36.6 M, up 13% YoY and exceeding guidance.
- Total revenue reached $38.0 M (12% increase), while the company posted a net loss of $7.2 M but generated positive operating cash flow of $0.5 M.
- Management highlighted the highest new‑business bookings in company history, driven by Generative AI and Commerce solutions, and announced an outlook placing FY 2026 SaaS revenue at the upper end of prior guidance.
Key Details
- Revenue & Growth
- SaaS Subscription Revenue: $36.6 M (Q3 2025: $32.3 M) – +13% YoY.
- Coveo Core Platform SaaS: $35.8 M – +15% YoY.
- Qubit Platform SaaS: $0.8 M – ‑30% YoY (platform being deprecated).
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Total Revenue: $38.0 M – +12% YoY.
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Margins & Profitability
- Gross Margin: 78% (stable vs prior period).
- Product Gross Margin: 81% (‑1 ppt YoY).
- Net Loss: $(7.2) M (vs $4.0 M profit in Q3 2025).
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Adjusted EBITDA: $(0.2) M (vs $0.6 M prior year).
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Cash Flow
- Operating cash flow: +$0.5 M (vs –$0.2 M YoY).
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Cash & cash equivalents at period end: $100.8 M.
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Bookings & Customer Wins
- Record new‑business bookings; highest ever in company history.
- Largest new customer win: a Fortune 500 industrial leader.
- Generative AI accounted for >25% of new bookings; Commerce ~50%.
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Notable new customers added: Boston Scientific, Deloitte Digital, Tyler Technologies, Roper St. Francis Healthcare, Insight Enterprises, Total Tools, Metcash, etc.
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Product & Partnership Updates
- Launched “RAG‑as‑a‑Service” for AWS Agentic AI Services.
- Introduced Coveo app for ChatGPT (OpenAI).
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Signed non‑binding MoU with Government of Canada to modernize public service with AI.
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Share Repurchase
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Purchased ~1.1 M subordinate voting shares at weighted average C$6.13, total consideration $4.7 M under normal course issuer bid.
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Financial Outlook (FY 2026)
- SaaS Subscription Revenue: $142.2‑$142.7 M (upper end of prior guidance).
- Total Revenue: $148.0‑$148.5 M.
- Adjusted EBITDA: projected to be approximately breakeven for Q4 and full year.
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Expectation of positive operating cash flow for the full fiscal year.
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Conference Call
- Hosted on Jan 29, 2026 at 5:00 p.m. ET; participants included CEO Laurent Simoneau, Executive Chairman Louis Têtu, CFO Brandon Nussey, and Incoming Interim CFO Karine Hamel.
Notable Quotes
“We achieved the highest level of new business bookings in the company's history… our strong performance across Gen AI and Commerce underscores our increasing strategic importance within the enterprise AI technology stack.” – Laurent Simoneau, Co‑Founder & CEO
“Coveo is uniquely positioned to deliver trusted AI experiences where scale, accuracy and governance matter.” – Louis Têtu, Executive Chairman